Organizational Change Management: A Comparative Analysis

This report delves into the complexities of organizational change, using Coca-Cola and Amazon as case studies. It examines the impact of change on strategy, operations, leadership, team dynamics, and individual behavior. The report evaluates internal and external drivers of change, emphasi...Read More

UNDERSTANDNG AND
LEADING CHANGE
TABLE OF CONTENTS

INTRODUCTION.....................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1. Compare different organizational on the basis of impact of change on strategy and operations........3
TASK 2.......................................................................................................................................................5
P2. Evaluate ways in which internal and external drivers of change affect leadership, team, and
individual behavior within an organization..............................................................................................5
TASK 3.......................................................................................................................................................6
P3. Evaluate measures that can be taken to minimize negative impacts of change on organizational
behavior...................................................................................................................................................6
TASK 4.......................................................................................................................................................7
P4. Barriers for change and how they affect leadership decisions in organization system.......................7
TASK 5.......................................................................................................................................................8
P5 Describe different type of leadership approaches to face organizational changes..............................8
CONCLUSION........................................................................................................................................10
REFERENCES........................................................................................................................................12
INTRODUCTION
Every company or organization have to work in complex business environment. There
are number of factors that affect the operations of institution in many ways. These have to take

into consideration by management so that they can frame policies accordingly. Organizational
changes refers to concept in which there are number of alterations or modifications that are
performed by management level. It has to comply with present scenario or time. The two
organizations that are included in this assignment are Coca cola and Amazon. Coca cola is
among the top most beverage brand that give tuff competition in market place to number of
company operating in same industry. Amazon is a well-established online e commerce site
providing online services to their users. Both these company share a large amount of market and
outcome. This report highlights the elements that directly affect the leadership, employee’s
behavior in business entity. There are several barriers to change that are faced by organization
and has to be met in effective manner so that its consequences are not bear by company in future.
It also underlines the importance of various leadership approaches that are applied by system so
final aims or targets are achieved in particular time frame.
TASK 1
P1. Compare different organizational on the basis of impact of change on strategy and
operations.
Changes are part and parcel for any company as they have to operate in dynamic
environment which keeps on changing with passage of time. Thus, company have to consider all
the changes in order to run their business smoothly without any hindrance or obstacles. It is the
obligation of higher level of management to introduce strategic policies to introduce change
model in management system. There can be number of barriers but these have to face in order to
receive positive and correct outcomes. Every organization operates to establish strong market
image and earn huge financial gains in their life time. Coca cola which is consider one of the
leading company in soft drinks. Amazon is also well established organization in online services
and share powerful market. Thus, any changes that are taking place in surrounding will affect
both these organizations directly or indirectly. Strategies are made for meeting future events that
may occur any time (Doppelt, 2017). Modifications are made in existing strategies because of
need for changes. Some are discussed below:
Criteria of differentiation Amazon Coca cola
Impact of external factors Amazon have to face
challenges from number of
elements that are present
outside the business
environment and cannot be
controlled very easily.
Amazon have established its
business by selling books
after that after examining
they have expand their
business operations to new
Coca cola have to face tuff
competition from its
competitors that are Pepsi and
many others. They have to
properly scrutinize the
policies of these company in
order to keep in pace with the
changing time. Sometime
they have to change their
formula of offering drinks so
that they can establish

level. positive image in their
customer’s mind.
Structural changes There are various situations
when amazon have to either
expand or reduce their
structure so that they could
run without any obstacle.
Structure may involve
modifying management level
to comply with current
market condition.
Structure has to be updated
day to day so that it does not
become obsolete and has to
stand strongly in front of
others so that they can
maintain their goodwill or
image. Unity of command or
chain has to be managed
effectively and efficiently.
Human resources Clients are the important
asset for the amazon
company as than only they
are running successfully in
competitive world. They have
to be regularly managed so
that business can run
smoothly without any
hindrances in operational
process.
Coca cola put full efforts to
maintain quality of their
human resources as they are
the one who work with
company to obtain their final
set vision and mission.
It is the duty of senior managers to deal with the changes very correctly so that its impact
cannot be faced for longer period of time (Yoder-Wise, 2014). There should be proper system to
implement these changes in positive manner. The plans should be drawn considering following
concepts that are discussed below:
 Company’s operations: it refer to production process and other transactions that take
place in day to day business life. Hence changes that may introduce affect this area in
many ways.
 Strategy formation: these are framed to achieve the future goals and vision without nay
hindrances that may arise due to several reasons.
There are countless dimensions having attached advantages and disadvantages that has to be
consider by organizations so that they can execute their working process in accordance to need
of changing time and face all challenges with full motivation.
TASK 2
P2. Evaluate ways in which internal and external drivers of change affect leadership, team, and
individual behavior within an organization.

Changes are something that lead modifications or alterations in some policy, rules or
regulations within the system. Managers have to examine the environment in such a manner so
that these changes can be adopted and applied in significant way. In order to keep in pace with
the changes it is necessary to adopt change management model to maintain the competitive
advantage in current market scenario. There are number of elements that are available internal
and external that has to be properly evaluated to know their nature so that it can be deal
accordingly. These changes affect individual working in organizational system, team structure as
well as whole management level. Hence it is very important to study these drivers of changes in
effectual and efficient mode. Internal factors are under control of system these can be modified
to best fit in the organizational system, but on the other external elements are beyond the control
thus, have to be consider properly (Suchman, 2011.).
Various external factors are discussed below:
 Changes in Environment: there are several changes that may arise in surroundings of
business entity and affect the working process in many ways. There can be number of
actions that are going on in dynamic and complex environment. Amazon have undergone
change in its products that they sell online. All these have been result of changing
demand of customers in market place.
 Changes related to competitor’s strategy: Every company have to face tuff competition
from their competitors that are present in scenario. For instance coca cola have to face
huge competition from thumb sup which gives huge challenge to the company. Coca cola
have to consider their strategy related o process, policies so that they are able to maintain
their image in minds of customers.
 Changes implemented by government body: This is the external constituents that are not
under the control of organizational system. They make certain laws and rules that have to
comply in order to run their operations in sustainable manner. Every business entity have
to follow that certain a rules and not following it will cause problem in front of them.
 Technological changes: Environment is keeps on changing in respect of technology.
There are various tools that has to adopt in system to attain final set objectives and goals.
There are various internal factors that have to be consider that impacts team structure in several
forms which is mentioned below:
 Number of team members: it refers to people that are constituted in single team hence
they have to be properly constructed so that they are targeted in accomplishing final goals
and mission of the company.
 Team structure: The structure of team should be formed in simple and accurate mode. So
that they can concentrate on achieving its purpose.
Internal factors influencing individual:
Leadership approach: there are various leadership styles that are available in company but all
cannot be applied simultaneously hence, number of factors are to be consider which executing
any leadership style (Hrebiniak, 2013).

 Behavior and capability of an individual: There are diverse individual that work together
while aligning their individual goals with company’s final aims. This have huge impact
on every employee as they have to adjust in changing environment and keep on working
with their best of efforts.
The above discussed factors have to be properly scanned by manager so that these changes can
be implemented correctly that only lead to accomplishment of final goals and objectives.
TASK 3
P3. Evaluate measures that can be taken to minimize negative impacts of change on
organizational behavior
There are two side of every process that is negative and positive. If the operations are
carried out in accordance to rules while attaining all set targets than the outcome will be
significant but if these alterations are negatively applied that can cause huge losses to the
company. Mangers or leaders have to evaluate such measures that aim in reducing the negative
impact of any changes that are introduced in the system. There are various alternatives that have
to be study to choose best of the option. Options to reduce negative impacts are briefly
discussed:
 Adopting advance and modern technology: current business world have to carried out the
processes in such a way so that modern and advanced technology can be utilized in
significant and appropriate mode. Company cannot control the technology changes that
are happening outside the environment which is dynamic in nature. Therefore, this can be
applied to reduce bad impact.
 Market study: It can also be known as market research that are conducted by management
team to study the behavior and nature of customers that are present there. It is essential to
review the conditions and current trends so that production or work process is carried out
accordingly (Johnson, 2016).
 CSR activities: there is some responsibility by company towards society where they are
operating. CSR activities include performing actions in such a way so that society will
not be harmed in any cost. Proper attention should be made to curtail pollution effect
which is affecting the society majorly. On the other hand all work must not produce
excessive wastes.
 Create strong image: It is prominent to build a strong image of any organization. This
aids them to enjoy sustainable growth in market place. As there are numerous
competitors present that poses cut throat competition, to face such challenges it become
mandatory for business firm to construct positive goodwill by meeting all needs and
wants of final customers in prospective manner.
 Care should be taken on wants of clients: customers are kings of market place. Every
company produce their services or products for satisfaction of their desires. Revenues and
sales volume is directly linked with thoughts of consumers about that particular product.

Hence, to pull down the negative impact this can prove to be one of the best measure that
can be consider by all company in business world.
 Be creative in thinking: it is prominent to introduce innovative ideas or thoughts in their
process frequently, as customers gets attracted towards it very easily. Innovation can be
defined as an introducing something unique that has not been yet utilized by anyone. It
also involves some modifications or alterations in existing operation system. This is the
best opportunity to adopt this factor to minimize negative impacts to significant level.
Amazon have come up with different and unique idea which have not been conducted by other
firms dealing in same industry. Their aim was to become world’s largest ecommerce site and
they become successful by introducing many new concepts (Whitney, and Cooperrider, 2011).
They offer around 200 different type of products which attract the interest of people to purchase
from this site. They have announce the Amazon prime facility for their customers. As they
believe that consumers should always be put on first before any taking any important decisions.
Thus, it can be observe that amazon have been continuously concentrating on customer’s
demands and make policy to fulfill it and that is one of the reason that they have become leading
online site.
TASK 4
P4. Barriers for change and how they affect leadership decisions in organization system
It is not an easy task to introduce change in any business. Lot of issues and problems are
interconnected with it. There must be proper handling of barriers so that business operations run
smoothly. In order to emulate with the current scenario, it is imperative to introduce changes in
an organization system(Salmela, Eriksson, and Fagerström, 2012). There is so much competition
in the market that business modifications are very necessary to uphold the market. There are
number of barriers faced by an organization which are discussed here under:
 Inefficacious Communication system: Communication means exchange of information
between two parties. If the messages and ideas are not properly communicated, it may
lead to barrier in communication system. Hence, it is management’s responsibility to
maintain an effective communication system.
 Focus on key business areas: In every business organization, there are some areas of
responsibilities which are known as critical areas of business. These areas require special
consideration of managers as it helps in achieving organizational goals. Ignoring these
critical areas of business may produce a huge barrier in front of the company.
 Choosing improper leadership style: By leader, we mean the person who leads the way
of other members of an organization in order to achieve the executive goals more
effectively and efficiently. However by choosing an improper and ineffective style of
leadership, an organization creates a barrier for itself. It may further lead to non-
achievement of targets as it is the leader or manager who renders proper information and
motivate employees to achieve set targets.
 Resistance to change: Humans are very less resilient to change. They accept the change
very hardly. This is because they do not want to leave their comfort zone. For them, any

modification in the current system is non-acceptable. This resistance to change is a huge
barrier for a business organization. In order to remove this barrier, there is a need of
proper training program wherein the employees and workers are told about the benefits
related to the modifications in the current working system of the organization. Modified
work schedules must be interpreted to them in the training program.
 Change is complex: It is very true that changes are very complex to implement. Number
of problems arises during implementation of such changes due to their complex nature.
This common barrier is often faced by most of the companies. The final step taken by
most of the companies is either they drop the plan of alterations or they modify the
changes in such a way that it can easily be implemented.
 Organizational Culture: Organizational Culture refers to the rules and regulations of the
institution. Culture plays an important role in the working of the employees as it directly
impacts their performance. For example: If the culture is rigid and inflexible, they will
not welcome any change very easily. Hence, rigid culture of any company will become a
barrier to accept any changes. On the contrary, if the culture is flexible, changes are
accepted by employees very easily.
The above discussion on barriers to change provides a clear cut relationship between leadership
decision and changes. Therefore it is concluded that any hindrance in order to change will impact
the decision making adversely in many ways. Therefore, it becomes very essential to supply
decisions in such a way so that employees or workers do not face any problem while working
(Stanleigh, 2013).
TASK 5
P5 Describe different type of leadership approaches to face organizational changes
The nature of business environment is very dynamic. It is not specific as it keeps changing
with the passage of time. These changes are not fixed. So it becomes the duty of the managers or
leaders to incorporate such changes in the organizational system in order to facilitate smooth
working of the organization. On the other hand, these changes are also necessary in order to keep
pace with the ever changing business environment. To handle such situations, there are number
of leadership techniques that are used by the managers accordingly as per the situation faced.
Some leadership theories are discussed here under:
 Democratic leadership style: In democratic style of leadership, leaders act like
democrats. Democratic leaders involve their sub-ordinates in every type of decision
making and give equal respect to their ideas and views. It enhances the participation level
of the sub-ordinates and encourages their innovative ideas and thoughts to be introduced
in the organizational system. It involve huge amount of benefits which are shared equally
between the leaders and their sub-ordinates. Also, it acts as a factor of motivation for
them to be a part of larger corporate level.
 Autocratic leadership style: Completely different from democratic style of leadership,
autocratic style of leadership discourages the involvement of the sub-ordinates in the

decision making process. Sub-ordinates are allowed only to follow the commands of their
leader. They are bound by the rules and regulations imposed by their leaders. Their ideas
and views are not welcomed at all.
 Laissez-Faire style of leadership- Laissez-faire leadership, also known as delegative
leadership, is a type of leadership style in which leaders are hands-off and allow group
members to make the decisions. Though the required resources are provided by the
leader, group members are expected to solve the problems on their own. They are free to
apply their innovative thoughts and ideas to solve a particular problem.
Here we discussed some of the leadership styles which can be adopted by a business
organization in order to cope up with the changes. Also there are some models of change which
can be adopted by a firm in order to achieve final goals more effectively and efficiently. A
combination of both, i.e. adoption of a perfect style of leadership and a perfect model of change
can help the organization to face any type of change in the best possible way (Hintz, and Bahia,
2013). Some of the models of change are discussed here under:
 Kotler’s model of change: Kotler suggests that for change to be effective and successful,
75% of a company’s management needs to “buy into” the change. It is considered to be
most effective and efficient change model. This model of Kotler have eight steps that
includes every aspects related to mission and vision of company, their policies and
procedures, long and short term goals etc. As per Kotler, “you have to work hard on step
1 by spending proper time and energy before moving onto next step.”
 Lewin’s model of change: In 1940, Kurt Lewin introduced a model of change which is
known as Lewin’s model of change which involves three steps. As per this model, a
change is brought in the organization in such a way that this change becomes a norm for
the entire association. This will lead to increase in outcome and growth as well. Three
steps involved in Lewin’s model are discussed below:
Unfreeze- Because many people resist change, the basic goal before the implementation of any
change is that it must go through initial step of unfreezing. Leaders have to examine behavior,
attitude, thinking process, implementation of each and every individual in order to implement the
change.
Change: At this stage, a management is ready to accept the change and this change is
implemented by following proper process and procedure. Proper training programs must be
scheduled in order to enhance the skills and knowledge of the employees to cope with the
changes.
Refreeze- The act of refreezing symbolizes reinforcing, stabilizing and solidifying the new state
after change. It is the last stage of change model, in which the changed system is refreeze. Efforts
must be made to guarantee that change is not lost. It needs to be cemented into the organizational
culture.

CONCLUSION
From the above report it has been concluded that there id concept of organizational change that
can be defined as making new policy and rules or updating existing regulations in accordance to
requirements. Important of various factors that are present in external environment and has to be
properly study so that they can impose positive result in any business organization. It also underlines
measures to overcome negative impacts that can hinder their growth in future. Leadership style also
plays essential role in system to influence number of factors that have to be unified together to face
numerous challenges that are present inside and outside the business world. Two top most company in
their sectors are highlighted under this, i.e. Coca Cola top most beverage company on the other side is
amazon which is e-commerce company operating in online operations. They have to face problems
related to various issues and has to be met in momentous way.

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